New British Columbia mining tax
CIM Bulletin, Vol. 83, No. 940, 1990
Robert B. Parsons, Partner, Price Waterhouse
Effective January 1, 1990, mines in British Columbia are subject to a new provincial mining tax statute, the Mineral Tax Act. Under this Act, minesaresub-ject to a two-tier tax system, with a minimum tax payable on "net current proceeds" and a higher tax paid on net income. For many mines, the present value of tax paid under the new rules should be comparable to the amount paid under the old rules. Earlier cash payments could pose difficulties, particularly for smaller mines, but existing producing mines could benefit in the short-term.